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Mr. RUDER. It is almost a marketing program on behalf of the services of the Department.

The CHAIRMAN. I have no further questions.

Senator COTTON. Do you have as part of your public relations policy encouraging your personnel, at least those in the higher brackets, to go out and address groups of citizens or service clubs and chambers of commerce, and so forth?

Mr. RUDER. Yes.

Senator COTTON. I am now finding out something that might be useful.

Do you pay their expenses to and from, if the occasion is big enough

to warrant it?

Mr. RUDER. Our criterion there is that if it is a worthwhile group and important in the perspective of the man's job for him to go and make that trip, then it should be paid for by the Government.

If it is not that important, the man should not make the trip. Senator COTTON. Then if some fairly large and important gathering of business people interested in business matters appealed to me, for instance, or some other Senator or Member of the House, to get them a suitable speaker for their annual banquet or something, I shall call you up or your assistant or somebody and my troubles are all over? Is that right?

Mr. RUDER. We would hope so. We get into problems with rank sometimes. We can always find somebody to work with a business group. Sometimes the Secretary's calendar and the Under Secretary's calendar get jammed up. But we do have enough knowledgeable personnel, and we have worked hard at training them to make good presentations of the departmental services, so that a large corps of men is available.

Senator COTTON. I asked those questions in a jocular way but they were really very serious.

Mr. RUDER. It is serious.

Senator COTTON. I think it is a problem I am sure with me and others of my acquaintance, and I am sure we would not abuse the privilege and expect you to send people around the country long distances to talk to unimportant groups. But it is a public service and it is for the benefit of the Department and of the country to do that sort of thing, is it not?

Mr. RUDER. I agree.

Senator MCGEE. Would the Senator yield on that point?

Senator COTTON. Certainly.

Senator MCGEE. I think the privilege may abuse some Senators. And I say that with feeling for the reason that occasionally we are also asked to speak at chambers of commerce, and because they can be supplied speakers from the Department they do not expect to even pay the railroad ticket coach class of a Senator to come out to speak to them. And they will spend twice that much for their reception in advance of the meeting on their own affairs.

But the Senator now is expected to come 2,000 miles free of charge to serve the chamber of commerce because this is somehow a public service and somebody must be paying him. We cannot put in for that as one of our legitimate trips home unless the chairman of this

committee would now agree that the members of this committee ought to speak to a chamber of commerce whenever the occasion arose.

Senator COTTON. The trouble with that, before the chairman answers, is I believe there are some rules restricting being sent on committee trips to our own State. And I am positive I am not a bit interested in speaking in Wyoming, and there is no need to pay my expenses to New Hampshire.

Senator MCGEE. New Hampshire is much closer.

But when you make 15 or 20 trips a year to Wyoming and you get compensated for only 2, it is quite a factor.

The CHAIRMAN. Off the record.

(Discussion off the record.)

The CHAIRMAN. On the record.

Senator COTTON. Do you also in your Department have charge of relations with the Congress, liaison or whatever?

Mr. RUDER. The legislative liaison is through the Office of our General Counsel with the exception of our appropriation bill which is handled from my office.

Senator COTTON. Thank you.

The CHAIRMAN. Any further questions?

Senator Morton?

Senator MORTON. I have one question.

Sir, what was your background before you came with the Government? Ruder & Finn?

Mr. RUDER. A company by the name of Ruder & Finn. This is a marketing and public relations firm which my brother-in-law and I started in 1948.

Senator MORTON. Do you have any connection with that firm today? Mr. RUDER. No, sir. And the full detail of my financial relationship is covered in my statement to the chairman.

Senator MORTON. I have a memorandum here without a date which is just a short memo signed by Mr. Stanley Thea. It says:

"Bill Ruder wanted me to be sure to keep you current on what is going on at Ruder & Finn. Here's a new chart," and so forth and so on. I am not interested in the article. The date on it is the 1961 Harvard Business Review.

But it seems that your former firm is capitalizing on the fact that you are up here as Assistant Secretary of Commerce. I do not know whether you can do anything about it, but some of your competitors may be unhappy about that.

Mr. RUDER. Mr. Thea called me and asked me about that. The background of it is that there were some business associates with whom I maintained a fairly regular correspondence. They took over my work after I left the firm. He asked if for those men who were on my regular mailing list and would receive a mailing such as they, perhaps every 6 weeks, the first time he used his name in substituting for me it would be proper for him to introduce himself and say "Ruder asked me to keep in touch with you."

This to my knowledge is the only time that has been done. I told him he could do it just the one time in order to insert his own name into the picture and create the bridge. And that was all, sir.

Senator MORTON. That is all.

The CHAIRMAN. Where are these regional conferences going to be held? Do you have that information?

Mr. RUDER. Yes. The first one, April 19, is in Los Angeles. We then go to Kansas City, Dallas, Atlanta, and Boston.

The Senate Appropriations Committee gave us permission to spend between $50,000 and $75,000-I am not exactly sure of the figurethis year in testing out this regional meeting technique and several others.

For instance, we have also built an economic briefing room in the Department so that we could invite groups of businessmen to come in for a briefing on the economy. And some of these new contract procedures. This is part of this new experimental program.

The CHAIRMAN. How many regional offices do you have?

Mr. RUDER. We have 34 regional offices.

The CHAIRMAN. Do you intend to cover the 34 sooner or later?

Mr. RUDER. Sooner or later. The first five this year. In fiscal 1963

I would assume that we would triple that at least and keep right on going around on a cycle basis.

The CHAIRMAN. All right. Thank you, Mr. Ruder.

Any further questions?

(No response.)

Thank you very much. Sorry to keep you waiting so long.

Mr. RUDER. That is fine. Thank you.

The CHAIRMAN. The committee will recess.

(Whereupon, at 11:45 a.m., the committee recessed subject to the call

of the chairman.)

SUNDRY NOMINATIONS

TUESDAY, MARCH 20, 1962

COMMITTEE ON COMMERCE,

U.S. SENATE,

Washington, D.C.

The committee was called to order, pursuant to notice, at 10 a.m., in room 5110, New Senate Office Building, Hon. Warren G. Magnuson, chairman of the committee, presiding.

The CHAIRMAN. The committee will come to order.

We will begin early. Several Senators are on their way, but we must adjourn this public hearing by 10:30 because the Senate meets this morning at 10:30.

NOMINATION OF IRVIN STEWART, OF WEST VIRGINIA, TO BE ASSISTANT DIRECTOR OF THE OFFICE OF EMERGENCY PLANNING (DIRECTOR OF TELECOMMUNICATIONS MANAGEMENT)

We have before us the nomination of Dr. Irvin Stewart to be Assistant Director of the Office of Emergency Planning. Dr. Stewart was actually nominated to the position of Assistant Director of Emergency Planning, but he will be Director of Telecommunications Management, a position established by an Executive order issued by the President, February 16, 1962.

That order, of course, created a tremendously important position. In this space age, we are just entering, it may be one of the most important positions over which this committee has jurisdiction. Certainly the President recognized this importance, as one can see by looking at his order. While I intend to place that order in the record in full, let me quote some highlights from it:

Telecommunications is vital to the security and welfare of this Nation, and to the conduct of its foreign affairs.

The radiospectrum is a critical natural resource which requires effective, efficient, and prudent administration in the national interest.

The order then proceeds to grant considerable authority and heavy responsibility to this new position. For instance, the Director shall: Coordinate telecommunications activities of the executive branch; Be responsible for the formulation of overall policies and standards; Develop data with regard to U.S. frequency requirements; Encourage research; and

Assign radiofrequencies to Government agencies, and establish such interagency advisory committees and working groups as may be

necessary.

And then several general objectives regarding the full and efficient employment of telecommunications resources in carrying out national policies.

I will put this statement also in the record in full. There is a great deal more in the Executive order which will also be put in the record. (The material follows:)

NOMINATION OF DR. IRVIN STEWART TO BE AN ASSISTANT DIRECTOR OF THE OFFICE OF EMERGENCY PLANNING

While Dr. Stewart is actually nominated to the position of an Assistant Director of the Office of Emergency Planning, he will be the Director of Telecommunications Management, a position established by an Executive order issued by the President February 16, 1962.

That order, I believe, created a tremendously important position. In this space age we are just entering, it may be one of the most important positions over which this committee has jurisdiction. Certainly the President recognized this importance, as you can see by looking at his order. While I intend to place that order in the record in full, let me quote some highlights from it:

"Telecommunications is vital to the security and welfare of this nation, and to the conduct of its foreign affairs.

"The radiospectrum is a critical natural resource which requires effective, efficient, and prudent administration in the national interest.

"It is essential that responsibility be clearly assigned within the executive branch of the Government."

The order then proceeds to grant considerable authority and heavy responsibility to this new position. For instance, the Director shall

Coordinate telecommunications activities of the executive branch;

Be responsible for the formulation of overall policies and standards;
Develop data with regard to U.S. frequency requirements;

Encourage research; and

Assign radiofrequencies to Government agencies, and establish such interagency advisory committees and working groups as may be necessary. Some of the objectives to be considered are:

Full and efficient employment of telecommunications resources in carrying out national policies;

Development of plans, policies, and programs to take full advantage of technological development in telecommunications to serve the national security, to sustain and develop world trade and commerce, strengthen the position and serve the best interests of our country in negotiations with foreign countries, and permit maximum use of resources through better management;

Utilize the radiospectrum in a manner to permit and encourage the most beneficial use thereof in the public interest; and

Implement the national policy of development and effective use of space satellites for international telecommunications service.

There is more, but we will, without objection, place the entire Executive order in the record at this point.

[Presidential documents]

TITLE 3-THE PRESIDENT

EXECUTIVE ORDER 10995

ASSIGNING TELECOMMUNICATIONS MANAGEMENT FUNCTIONS

Whereas telecommunications is vital to the security and welfare of this Nation and to the conduct of its foreign affairs;

Whereas it is imperative that the United States maintain an efficient and wellplanned national and international telecommunications program capable of stimulating and incorporating rapid technological advances being made in the field of telecommunications;

Whereas the radio spectrum is a critical natural resource which requires effective, efficient, and prudent administration in the national interest;

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